Configuring Shipping Costs on Amazon

Tommaso Spagnoli — Thu, 11 Jul 2024 07:11:31 +0000

This guide provides detailed instructions on how to efficiently set up shipping costs on the Amazon platform.

1. Amazon Shipping Cost Configuration

1.1 Shipping Rates Table in Marketplaces

Before starting the shipping cost configuration on Amazon, it is important to understand the associated costs. In the Carriers section then Marketplace Freight Template > Marketplace freight, we provide a table that includes approximate shipping price ranges:

Configuration Strategies:

Conservative: Opt for maximum prices to avoid losses on shipping costs.

Competitive: Use the minimum values, absorbing part of the cost on some shipments.

For a more detailed review of shipping costs by shipping agency, download the CSV file from your BigBuy control panel (in the Downloads section > CSV/XML file).

1.2 Setting Up Shipping Costs on Amazon

In this section, we will learn how to set up shipping costs in your Amazon account, considering the carrier’s table we reviewed earlier.

Access the shipping cost setup section from your Amazon account.

In Shipping Settings > Shipping Templates, create a new template, set costs per product/weight, and shipping time according to the carrier’s table. Follow the recommended transit times to avoid penalties.

If you want to ship outside your main country, you need to configure the zones for International Shipping as well.

IMPORTANT:

In the Transit Time for each of the zones created on Amazon, it is highly recommended to respect the time indicated in the Days in Transit column of the carrier’s table. This will help avoid delays in deliveries and avoid any impact on your late shipment rate. The late shipment rate is a very important parameter for Amazon, which can penalize you with partial or total account closure. You can see this rate in the “Account Health” section in Amazon’s Seller Central.

2. Carrier Configuration

2.1 Selecting Carriers

Learn how to quickly manage the activation/deactivation of available carriers for Amazon.

Activate/deactivate carriers on the Multi-Channel Integration Platform (MIP) according to your preferences. The changes are saved automatically; no need to publish.

Deactivating a carrier could leave areas without service, and the orders will be marked as “Pending on Review” so you can choose from available carriers.

NOTE:

We recommend leaving all carriers active to avoid situations where an order remains pending on a manual intervention. Then have to choose available carriers for a specific product and destination.

2.2 Preparation Time

The order preparation time that marketplaces allow to configure does not account for the time of day the order is placed, nor does it consider local holidays or weekends. Additionally, some products are in stock for immediate shipment, while others are shipped the next day.

BigBuy has a technology that solves this complexity. Its algorithms automatically calculate and changes the optimal order preparation time in the marketplace based on multiple conditions.

Note that some marketplaces have preparation time limitations.

IMPORTANT:

In exceptional situations, it may be helpful to temporarily add extra days during events like strikes or holidays to avoid affecting the late shipment rate.

2.3 Free Shipping Configuration

In the same Carrier’s section, you have the Free Shipping option. By activating it you will automatically include the shipping costs in the final sale price.

Follow these steps to activate Free Shipping both on Amazon and on the MIP:

Activating Free Shipping on Amazon:
- Set up templates with 0€ shipping rates in the Shipping Settings section on Amazon.

Activating Free Shipping on the MIP:
- In Carriers > Carrier Settings on the MIP activate the Free Shipping option and publish to apply changes.
- Remember to activate free shipping on the Marketplace before doing it on the MIP.

NOTE:

If you use International Listing, apply a single shipping rate to the country of origin.
You can create specific templates for countries connected via International Listing on Amazon.

Find more information on free shipping configuration on the following link.

3. Marketplace Freight Template

3.1 Default Shipping Templates

If you are looking for specific shipping costs for BigBuy products, this section guides you through the setup both in the marketplace back office and on the MIP.

Create a specific template for BigBuy’s products in the marketplaces back office.

On the MIP, indicate the same name you have given to the template created before. Add it to Carriers > Marketplace freight template < Default shipping templates.

Find more information on shipping templates at the following link.

3.2 Shipping Restriction Template

If there are products in your catalogue selection that are not exported outside the European Union and some islands, you will see this option in your integration software settings. Generally, these products have references starting with S71*, S72*, S74*, S83*, S91* and M01*.

Create a shipping template in the Marketplace for these products and fill in the name of the template here.

3.3 Free Shipping Template

If there are products in your catalogue selection that have free shipping by default (SKU references S71* and S74*), you can create a template for them and specify the name of that template in this field.

Final Considerations:

Configure shipping costs on each Marketplace first.

Consider using the MIP Free Shipping feature to improve conversion rates.

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